Potbelly(PBPB) - 2025 Q1 - Quarterly Results

Potbelly Corporation Reports Results for First Fiscal Quarter 2025 Performance Overview and Outlook The company reported strong Q1 2025 results exceeding expectations and reiterated positive full-year guidance Q1 2025 Financial Highlights (vs. Q1 2024) | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | System-wide Sales Growth | 4.8% | N/A | N/A | | Total Revenues | $113.7 million | $111.2 million | +2.3% | | Company-operated Same-store Sales | 0.9% | (0.2)% | +1.1 ppt | | Average Weekly Sales (AWS) | $24,550 | $24,250 | +1.2% | | GAAP Net Loss | $(62) thousand | $(2.8) million | +97.8% | | GAAP Diluted EPS | $(0.00) | $(0.09) | +$0.09 | | Adjusted EBITDA | $5.5 million | $5.7 million | -2.8% | - CEO Bob Wright highlighted the company's strong start to 2025, citing robust profitability and significant progress in franchise development, declaring Potbelly a "growth company again"[3] Financial Outlook for Q2 2025 and Full Year 2025 | Guidance Metric | Q2 2025 | Full Year 2025 | | :--- | :--- | :--- | | Same Store Sales % Growth | 1.5% to 2.5% | 1.5% to 2.5% | | Adjusted EBITDA | $8.25M to $9.75M | $33M to $34M | | New Unit Growth | N/A | At least 38 shops | Business Development and Capital Allocation The company advanced its franchise growth strategy with new shop openings and commitments while returning capital to shareholders - The company opened four new shops in Q1, including three franchise shops operated by three different partners across two states[6] - Potbelly signed 40 new franchise shop commitments during the quarter, increasing the total number of open and committed shops to 766 as of March 30, 2025[6] - Under its share repurchase program, the company bought back about 117,000 shares for approximately $1.1 million in Q1, with $17.5 million remaining available for future repurchases[7] Financial Statements This section presents the unaudited Q1 2025 consolidated financial statements, detailing financial performance, position, and cash flows Consolidated Statements of Operations Q1 2025 revenues grew 2.3% to $113.7 million, and the company significantly narrowed its net loss to just $62 thousand Q1 2025 Statement of Operations Highlights (in thousands) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Total Revenues | $113,681 | $111,153 | | Income from Operations | $250 | $118 | | Net Loss Attributable to Potbelly | $(62) | $(2,767) | | Diluted Net Loss Per Share | $(0.00) | $(0.09) | Consolidated Balance Sheets The balance sheet remained stable as of March 30, 2025, with total assets at $265.8 million and a slight increase in cash Balance Sheet Summary (in thousands) | Account | March 30, 2025 | Dec 29, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $14,756 | $11,663 | | Total current assets | $36,500 | $33,201 | | Total assets | $265,757 | $263,146 | | Total current liabilities | $68,391 | $65,233 | | Total liabilities | $207,404 | $205,198 | | Total equity | $58,353 | $57,948 | Consolidated Statements of Cash Flows The company generated strong operating cash flow of $8.6 million in Q1 2025, a significant improvement from the prior year Cash Flow Summary (in thousands) | Cash Flow Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $8,629 | $693 | | Net cash used in investing activities | $(4,925) | $(3,736) | | Net cash used in financing activities | $(611) | $(18,022) | | Net change in cash | $3,093 | $(21,065) | Non-GAAP Financial Measures and Reconciliations The company utilizes non-GAAP metrics like Adjusted EBITDA and Shop-level Profit to provide a clearer view of underlying business performance - Management uses non-GAAP measures like Adjusted EBITDA, adjusted net income, and shop-level profit to evaluate performance, believing they provide greater transparency and comparability[14][15][16] Reconciliation of Net Loss to Adjusted EBITDA (in thousands) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net loss attributable to Potbelly Corporation | $(62) | $(2,767) | | Depreciation expense | $3,721 | $3,011 | | Interest expense, net | $167 | $364 | | Income tax (benefit) expense | $(2) | $51 | | EBITDA | $3,824 | $659 | | Stock-based compensation & other adjustments | $1,698 | $5,021 | | Adjusted EBITDA | $5,522 | $5,680 | Shop-Level Profit Calculation (in thousands) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Income from operations | $250 | $118 | | Plus/Less Adjustments | ... | ... | | Shop-level profit | $14,936 | $14,511 | | Sandwich shop sales, net | $109,002 | $107,577 | | Shop-level profit margin | 13.7% | 13.5% | Selected Operating Data Q1 2025 operating metrics showed positive momentum with a 0.9% increase in comparable store sales and a net expansion of the shop footprint Key Operating Metrics | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Company-operated comparable store sales | 0.9% | (0.2)% | | System-wide sales | $140,661 | $134,188 | Shop Count Activity (Q1 2025) | Shop Type | Beginning of Period | Openings | Sold to Franchise | Closures | End of Period | | :--- | :--- | :--- | :--- | :--- | :--- | | Company-operated | 346 | 1 | (4) | (2) | 341 | | Franchised | 96 | 3 | 4 | 0 | 103 | | System-wide | 442 | 4 | N/A | (2) | 444 |